Shares Slide in After-Hours Trading; Programming Costs Likely to Rise

Netflix Inc. posted a stronger quarterly profit and continued to add customers, a sign that its bold and in some ways risky shift in programming strategy is paying dividends.

The Los Gatos, Calif., streaming-video provider said it gained 630,000 U.S. streaming subscribers in the quarter ended June 30, the midpoint of its guidance range but short of Wall Street's expectations. Netflix shares fell 6.2% in after-hours trading, after...